Basic Pay
Basic pay is considered to be the salary of a servicemember. It is the amount of money that is paid to a servicemember in exchange for duties performed. Basic pay is calculated based on a servicemember’s rank and time in service.
Allowances
Allowances are tax free amounts of money that are given to a servicemember in addition to his or her basic pay. Allowances are usually meant to be used in a specific term. For example, the Basic Allowance for Subsistence (BAS) is an allowance given to servicemembers that can be used to pay for food within a certain period of time. Allowances are often calculated based on the family status of a servicemember and the location of their assignment.
Special Circumstances
Military members who are assigned to certain overseas locations are eligible for tax free pay and may or may not be eligible for tax free hostile fire pay, hazardous duty pay, and/or imminent danger pay.
Servicemembers who have undergone advanced training and certification programs are often eligible to earn higher wages. For example, a servicemember who can prove proficiency in a foreign language could receive more money for their knowledge.
Retired servicemembers can receive payments based on their rank and time in service. The more time spent in active duty, the more money they will be eligible to receive during retirement.
Disability payments to military veterans are generally not taxed and are calculated based on the degree of the injury and the limits that the injury imposes on the veteran’s everyday life.
How Much am I Eligible For?
To determine the level of pay that you are eligible for, you will want to consult a military pay chart. These can be found at the Defense Finance and Accounting Service (DFAS) website.
